Stock of the Day

October 25, 2023

Evertec (EVTC)

$29.68
-$0.30 (-1.0%)
Market Cap: $1.79B

About Evertec

EVERTEC, Inc. engages in transaction processing business and financial technology in Latin America and the Caribbean. The company operates through four segments: Payment Services - Puerto Rico & Caribbean; Latin America Payments and Solutions; Merchant Acquiring; and Business Solutions. It provides merchant acquiring services, which enable point of sales and e-commerce merchants to accept and process electronic methods of payment, such as debit, credit, prepaid, and electronic benefit transfer (EBT) cards. In addition, the company offers payment processing services that enable financial institutions and other issuers to manage, support, and facilitate the processing for credit, debit, prepaid, automated teller machines, and EBT card programs; credit and debit card processing, authorization and settlement, and fraud monitoring and control services to debit or credit issuers services. Further, it provides business process management solutions comprising core bank processing, network hosting and management, IT professional, business process outsourcing, item and cash processing, and fulfillment solutions to merchant, fintech, financial institutions, and corporate and government customers. Additionally, the company owns and operates the ATH network, a personal identification number debit networks. It manages a system of electronic payment networks that process approximately six billion transactions. The company sells and distributes its services primarily through direct sales force. It serves financial institutions, merchants, corporations, and government agencies. EVERTEC, Inc. was founded in 1988 and is headquartered in San Juan, Puerto Rico.

Today's Trend

Evertec, Inc. (NYSE: EVTC) reported a strong second quarter, but its shares moved lower, suggesting investors may have been looking for a more substantial outlook upgrade or reacting to the gap between adjusted and GAAP earnings.

  • Second-quarter adjusted earnings were $1.05 per share, exceeding the $0.95 consensus estimate and rising from $0.89 a year earlier. Revenue increased approximately 20% year over year to $274.8 million, above expectations of $262.2 million. Evertec Reports Second Quarter 2026 Results
  • Adjusted EBITDA rose 18% to $109.3 million, while revenue growth was approximately 16% on a constant-currency basis, indicating solid underlying operating momentum. Evertec Q2 Earnings and Revenues Top Estimates
  • Evertec raised or reaffirmed a favorable full-year outlook, projecting 2026 adjusted EPS of $3.94 to $4.04, above the roughly $3.80 analyst consensus. Revenue guidance is approximately $1.1 billion. Evertec Q2 Outlook
  • GAAP net income attributable to common shareholders was only $5.4 million, or $0.09 per diluted share, considerably below the reported adjusted EPS figure. Investors may be evaluating the quality and sustainability of the quarter’s adjusted results. Evertec Q2 Earnings Snapshot
  • Despite the earnings and revenue beats, EVTC shares decreased, indicating that the results and outlook may have been largely anticipated, with the modest guidance premium failing to provide a fresh catalyst.
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